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Commercial loan workers specialize in the commercial sector of lending, and have a slightly different job description than the loan officer—though responsibilities may be similar or exactly the same. The job is not a managerial position and thus starts at $48,000 on average, according to the HR Certified Compensation Professionals report. An essential job of the loan review officer is analyzing the submitted commercial loan to endure compliance with state law and company policy, assuming he doesn’t work as a development officer in addition to a reviewer.

Oftentimes, developmental officers are so eager to pass clients through the screening process that they don’t maintain objectivity and may even over-qualify a consumer for a business loan, even though that consumer doesn’t have the credits or assets necessary to merit such a loan, or a hefty price. Of course, since this officer is not a manager, he or she typically reviews smaller loans of limited complexity. The major decisions are still decided upon by the commercial loan manager.

Duties of a Commercial Loan Officer

A commercial loan officer performs portfolio reviews and must consider all factors including risk, size, type of commercial loan and asset quality. The officer is also expected to maintain quality standards for credit score and confirm important information related to liens, repayment and collateral. Documentation is a must, since these are records that verify if the company is staying compliant with federal and state guidelines.

Other job descriptions for review officers include validating a ratings system, evaluating loans for an unexpected loss, and finding potential problems with loans that may contain errors or number discrepancies. The officer monitors the portfolio for diversification purposes, ensuring that there is fairness in lending—as well as a profit minded strategy. This isn’t charity work but business and senior officers are sometimes entrusted with reviewing responsibilities. Lastly, review officers may review appraisal files and other legal documents like deeds of trust, UCC filings, and financial statements.

The Skills You Need to Excel as a Commercial Loan Review Officer

This is a job that favors an experienced loan officer, one who may even be reaching out to a managerial position. After all, it’s not enough to approve the application. The review officer is also known as a contract or numbers expert; one capable of identifying trends, analyzing performance ratios and knows all legal precedents that may negate an application. Some loan review officers are qualified to the point that they can suggest changes for policies and other major problems.

A comprehensive understanding of finance and business is required to break into this field, even in a non-managerial role. You should start your career by earning a bachelor’s degree in finance and banking. Other skills that will come in handy are writing and speaking ability, reading, the ability to relate to people and communicate with a wide variety of workers and executives. Experience requirements may differ, though it is higher than a loan officer’s position, sometimes as long as ten years

What matters is that this job is available regardless of an economic downturn, and it does serve a good purpose since you are helping people start their dream business. Contact UMD or any colleges listed below to learn more about opportunities in the loan process.